PM's lament unjustified, govt must buck up, says India Inc

PM's lament unjustified, govt must buck up, says India Inc

Differing with Prime Minister Manmohan Singh, who feels the corporate sector has been harsh in blaming the government, leading players in India Inc say a policy paralysis in the government and its inability to push reforms have indeed led to an economic slowdown and Singh's criticism is not justified.

Federation of Indian Chambers of Commerce and Industry president Harsh Mariwala does not mince words and says, "This is a democracy and I see no problem if the industry airs its views.

"In my opinion, being vocal can bring about a positive impact. There is no harm if you are vocal about the issues you face.

"There is a problem of trust between the government and the corporate sector."

PM's lament unjustified, govt must buck up, says India Inc

Mariwala says the industry body has been getting feedback from its members, clearly talking of a 'policy paralysis', 'reversal' and 'stalemate' in the government.

He had earlier said the business confidence in corporate India was even lower than in 2008.

Mariwala was responding to the concerns raised by Manmohan Singh at a meeting with industry chieftains (including Mukesh Ambani, Ratan Tata and Rahul Bajaj, among others) last week, where he said he was disappointed with the negative comments emanating from the industry.

PM's lament unjustified, govt must buck up, says India Inc

The impact of the mining ban has taken a toll. Environmental clearances have also been pending.

"The Land Acquisition Bill in its current form is not industry-friendly at all."

Refusing to accept policy makers' criticism that Indian Inc is only airing grievances and not supporting the reform process, many say it is the other way around: The government is not pushing the reform agenda.

PM's lament unjustified, govt must buck up, says India Inc

Kishore Biyani, chairman of Future Group, the largest retailer in the country, says, "Though it is good the PM is talking about the importance of speaking positive things, I believe companies are talking both positive and negative about the economy.

"They have always supported the good initiatives of the government."

But, many in corporate India concede the strong stand taken by the industry, especially many leading honchos like Wipro chairman Azim Premji, against the government might need to be moderated.

Venu Srinivasan, managing director of TVS, who has made no bones about the present economic situation being more difficult than in 2008, says, "The industry is surely seeing some pain. But, it has to moderate its shrill tone and engage with the government".

The question is whether the engagement will turn the tables for economic reforms.